The Joseph Rowntree Foundation today published new research into the cost of building more sustainable housing. It asked if sustainable homes could be built more cheaply, and compared a range of approaches.
The research found that building more energy efficient homes costs between 2.5% and 24.9% more per dwelling. The graph shows that building to Code level 4 and including allowable solutions is cheaper than building to Code level 5 across different house types.
[Click on image to enlarge]
We need to build more homes to meet growing demand, and it is vital that new homes are built with the needs of both people and the environment in mind. Ideally, we would build all new homes to the highest standards, but this is clearly the most costly solution.
What we also need to bear in mind is that our current housing stock needs improving. Currently, we are nowhere near meeting carbon reduction targets, and investment in existing stock is limited. On top of that, poor quality housing is associated with a host of additional costs, such as poor health and fuel poverty. The cost of poor housing to the NHS alone amounts to £600m per year.
The key question here then, is not can we afford to build sustainable homes, but can we afford not to? The long term consequences of allowing our existing stock to remain energy inefficient outweigh the costs of addressing them now. Building to Code level 4 and using the investment from allowable solutions to retrofit existing stock could help address this. But it is important that the price of carbon is at the right level to support this investment.
The report also considers what can be done to reduce the barriers to delivering more sustainable homes. While increased sustainability could decrease supply by between 1% and 2%, supporting allowable solutions and delivering some carbon savings off site would limit this effect. Increasing planning permission by 20% would also increase supply by 3.5%, negating the decrease of supply through increased sustainability.
The research goes on to look at regulations and standards. The increased cost of building to higher standards is generally not reflected in the selling price, so private developers often build to minimum standards. This means regulations need to be the driver of higher standards. Registered Social Landlords tend to be more innovative, but up front capital cost appraisals usually mean they build to the minimum Homes and Communities Agency standards. The research suggests that an appraisal scheme based on the lifetime cost of the build would create more opportunities for sustainable homes to be built. This would future-proof these homes in the face of further rises in standards.
The performance gap between ‘as designed’ and ‘as built’ energy performance of dwellings presents a further challenge. The report recommends that an ‘as built’ standard should be incorporated into building regulations to improve sustainability, although it is acknowledged this would be neither simple nor cheap to achieve.
Modern Methods of Construction (MMCs) could improve fabric efficiency and address site-based performance gap concerns. However, these are often seen as risky, so are not well used. The report suggests MMCs be encouraged and supported, perhaps through the tax system. The HCA is encouraging RSLs to use MMCs through the Affordable Homes Programme.
Greater volume lowers the element of risk, creates more viable markets and leads to greater cost-efficiencies. The report therefore recommends facilitating increased volume by avoiding unnecessary variation in local requirements which prevent standardisation of components and process. This can help to mainstream product and process innovation.
In general, the planning process should be made more transparent to avoid less sustainable enterprises undercutting sustainable projects. Making more land with planning permission available would increase building opportunities.
We firmly believe we can’t afford not to build more sustainable homes and that retrofitting our existing stock is imperative. This report offers a range of solutions that, if implemented, could help support change.
Baker Homes host various events on housing and sustainability throughout the year. To learn more about these events and how to register, click here or the button below.
